What’s the Average Florida Real Estate Commission Rate?

Does the agent get to keep the full commission?

Although the seller pays the entire commission, the listing agent, who represents the seller in a transaction, doesn’t keep it all. As Riber explained, part of their commission goes toward marketing your property with professional photography, open houses, offline marketing, and more.

The commission is also typically split 50/50 with the buyer’s agent to compensate them for bringing a buyer to the sale and coordinating the buy-side of the transaction. So, around 2.5% to 3% goes to the listing agent, and the other 2.5%-3% goes to the buyer’s agent.

Both the listing agent and the buyer’s agent then share a percentage of their commission with their sponsoring broker.

These split rates can vary; however, it’s common for the listing agent to give their broker anywhere from 30%-50% of their commission, depending on the agent’s level of experience, their market size, and brokerage agreement.

How is the commission divided between agents?

The commission that’s paid by the seller will typically be split among each agent and the brokerages through which they hang their real estate license. Let’s say you sell your home for $400,000 with a 6% commission rate. You pay a commission of $24,000, and each agent has a 70/30 split agreement with their brokerage. Here’s how that might look:

• Listing agent: $8,400 (70% of their $12,000 commission share)
• Listing broker: $3,600 (30% of their $12,000 commission share)
• Buyer’s agent: $8,400 (70% of their $12,000 commission share)
• Buyer’s broker: $3,600 (30% of their $12,000 commission share)

“In all likelihood, you probably have some other fees – a transaction fee, technology fee, errors and omissions insurance… The money can be split up a variety of ways,” Riber says. The brokerage has office space, insurance, and a staff, so its cut gets split up as well.

Are Florida commission rates negotiable?

You can negotiate real estate agent commission rates, but don’t be surprised if your agent holds firm on how much they charge. A Consumer Federation of America report found that only 27% of agents are willing to negotiate the commission.

Riber says he’s “absolutely” willing to negotiate. “Sometimes, it’s just asking, ‘Hey, will you do it for 5%? [This other brokerage] will do it for 4.5%. Will you do it for that?’ … Then it becomes the agent’s duty to either justify their value to the customer and negotiate something that’s suitable for the agent, or just walk away.”

Some online brokerages will say they can list your property in an MLS (multiple listing service) for a 3% commission, but that’s all they’ll do, he adds. “You’re still acting as your own agent, which may or may not be a good thing, based on your real estate savvy.”

One reason agents often don’t lower their rate is that it may reduce their ability to negotiate a higher sale price for the seller. An agent’s services often include photography and pricing analysis, so a lower commission could also translate into a smaller marketing budget for your property, an inaccurate list price, fewer home promotions, and a lower likelihood of selling.

Overall, commissions in Florida are negotiable, but do your research first. When asking an agent to lower their pay, you’re limiting the pool of agents willing to work with you. And the downsides to working with a low-commission agent can be steep. Without a top Florida agent in your corner, you could dramatically undersell your home, have a rough selling experience, or fail to sell the home at all.

What is included in a real estate agent’s commission?

A full-service real estate agent in Florida will provide a high level of offerings that go toward giving you a great selling experience and boosting exposure to your home.

An agent’s services fall into a few main categories:

Guidance on pre-sale improvements

Agents see a lot of houses in their Florida markets. They will have an eye for the small but impactful improvements you could make to help it sell for more. The best agents will go above and beyond to help their clients get the job done.

Riber says his office helps arrange or recommends:

• a pre-listing inspection
• contractor services for repairs and simple modifications
• staging services
• cleaning services
• a showings coordinator
• professional photography
• a 3D home tour
• promoting the property on Facebook, Instagram, the MLS, and his website
• benefits consultation (searching for any available bonuses, or an interest rate buy-down)

“We get down into the nitty-gritty. We’ll also send out direct mail but will call the neighbors. We do texting services.” He also partners with buying groups that might offer bridge loans or entities such as HomeLight, which can tap into a network of investment buyers, for instance.

Pricing strategy

An agent will put together a comparative market analysis in the form of a thick packet featuring charts, facts, figures, and photographs of houses. The analysis will show you what your home is worth based on comparable sales in the neighborhood, market trends, and local price per square foot. This key tool helps you set a realistic price that can attract offers right off the bat in a fraction of the time it would take a non-professional to determine.

Marketing services

As part of their commission, at a minimum, Florida agents should offer expert home prep and staging, professional photography, marketing flyers and pamphlets, direct mail, automatic postings of your listing on major home search sites, local advertisements, exclusive previews for other brokers, and open house coordination. Advanced agents may also offer the development of a virtual tour.

Offer management and negotiations

When you receive one or multiple offers, an agent will help you determine the strength of the offer and work with you to proceed with responding to buyers. They’ll advise on whether to accept, reject, or make a counteroffer while putting together offer spreadsheets to identify the best offer in bidding war situations.

If a buyer requests repairs after the inspection, an agent will help you push back where appropriate and advise on when to concede. Should the appraised value be lower than the contract price, an agent can help you determine whether to ask the buyer to make up the difference or if you should lower your price.

A listing agent also offers single agency, providing loyalty, confidentiality, obedience, and full disclosure, Riber adds. A transaction brokerage does not.

“When I’m on the phone with a buyer’s agent, the buyer’s agent might say, ‘We’re making an offer of $500,000, but the buyer will probably pay X amount,’” he says. “If I’m a transaction broker, all I can say is, ‘Here’s the offer as it was presented in writing,’ not all the color commentary that might help their position in the negotiation.”

Market knowledge and neighborhood expertise

Great Florida real estate agents know what local buyers seek in homes and which of your home’s attributes to highlight. An agent will skillfully incorporate key features into your home’s listing description and immediately be able to recognize what makes your house or the surrounding area special.

What is a fair real estate commission in Florida?

As noted above, the average commission rate in most Florida markets is between 5%-6% to hire a full-service real estate agent. This rate should mean you have an agent who is dedicated to selling your home for the best possible price, who is available and communicative, and who will shepherd the transaction from start to finish. If an agent isn’t willing to offer all or the majority of services listed above, you should interview more candidates.

What if my Florida house doesn’t sell?

Real estate agents only get paid commissions if and when your home sells successfully. Most real estate contracts include an exclusive right to sell, which gives the real estate agent the sole rights to market the property, list the property on MLS, and receive the commission if the sale closes in a determined time frame. If your house remains on the market beyond the time period outlined in the listing agreement, you are not obligated to pay your agent.

However, keep in mind that your listing agreement may contain a protection clause, also known as a “brokerage protection clause,” “safety clause,” “extension clause,” or “tail provision.” The protection clause states that if a buyer who the listing agent introduced to the property purchases the property after the listing agreement expires, the seller still must pay the agent a commission.

“Unfortunately, we do a lot of work for free,” Riber says. “If their house doesn’t sell, they don’t pay anything.” While that hardly happened over the last two years, Riber says that in the past six months, perhaps 10% of his listings didn’t sell.

How can you avoid paying Realtor fees?

There are two main ways to avoid paying Realtor® fees. You can either sell your Florida home without an agent’s help, or sell it directly to a cash buyer without ever going on the market.

For Sale By Owner

Without a real estate agent, you’re responsible for preparing your home for sale, marketing, negotiating, and navigating legal and financial documents. When selling a house on your own, you’ll need to hire an attorney, at a minimum, to make sure the paperwork is right.

Typically, For Sale By Owner (FSBO) makes the most sense if you already have a buyer. As of 2022, 50% of FSBO sellers knew their buyer.

This indicates that while the FSBO route is rare, making up just 10% of sellers, it’s even more rare to forgo a real estate agent’s help when you don’t already have a buyer lined up and ready to go. In addition, according to a 2022 National Association of Realtors report, the median FSBO house sold for $225,000, compared to a median of $345,000 for agent-assisted sales. That’s a significant loss of proceeds in an effort to save about 5%-6% on commissions.

“It gets back to explaining how the commission splits up. They may think they’re saving 5% to 6%. They’re really only saving about 2% to 3%,” Riber says, because the listing agent and the buyer’s agent split this fee.

Consider whether all the details involved in selling on your own are worth your time and effort, he suggests. “Sometimes, somebody I know wants to do it themselves, and I’ll tell them, ‘You probably left $100,000 on the table.’ Occasionally, I’ll say, ‘More power to you. I couldn’t have done any better.’”

Sell to a cash buyer

Cash buyers — including iBuyers, investors, and house-buying companies — are individuals or entities that purchase your home outright, without the need for lender financing. These buyers typically make off-market purchases and can provide speed and convenience to sellers.

Just be aware that the price offered by most cash buyers may not match what you could receive on the open market with the help of a top agent.

If you’re interested in a cash sale, you can receive a no-obligation offer through HomeLight’s Simple Sale platform, with no hidden fees or agent commission. Simple Sale connects you to the largest network of cash buyers in the U.S.

Now you know how Florida agent commissions work

Sellers pay real estate commissions in exchange for an agent’s expertise and services throughout the sale process. If you’re worried about the cost of the commission, consider that targeted upgrades, stellar marketing, and savvy negotiations can help you maximize your sale price. With a performance-proven Florida agent to guide you, you also avoid the stress of navigating this complex process without professional oversight.

The key is finding a quality agent who provides the highest amount of value for their commission fee. In fact, our transaction data shows that the top 5% of agents in Florida sell homes for as much as 10% more than the average agent.

HomeLight can connect you with top Florida agents with experience tailored to your needs. Whenever you’re ready to get started, HomeLight would be happy to put your commission worries to rest by introducing you to several agents in your area who are well worth it.

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